Cogeco 2005 Annual Report Download - page 44

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5DEFERRED CHARGES, NET OF AMORTIZATION
(amounts are in thousands of dollars) 2005 2004
$$
New services launch costs 2,067 3,398
Reconnect costs 21,646 21,833
Equipment subsidies 13,249 20,875
Financing costs 1,262 2,152
Other 235
38,226 48,293
6CUSTOMER BASE
(amounts are in thousands of dollars) 2005 2004
$$
Cost 1,040,333 1,040,333
Accumulated amortization 50,781 50,781
989,552 989,552
At August 31, 2005 and 2004, the Corporation tested the value of customer base for impairment and concluded that no impairment existed.
7BANK INDEBTEDNESS
The operating line of credit available to the Corporation amounts to $25,000,000, none of which was used at August 31, 2005 ($4,610,000 in 2004).
This line of credit is revised periodically, does not require commitment fees and bear interest at bank prime rate plus 0.25%. At August 31, 2005,
the interest rate on bank indebtedness is 4.50% (4.00% in 2004). This line of credit is payable on demand and is secured on the same basis as
the Term Facility (note 8a)).
42
Cogeco Cable Inc. 2005
Notes to Consolidated Financial Statements